Personal Bankruptcy, Is it For You?

When do money worries mean it’s time to file for bankruptcy? This question comes up more during times of economic instability. Life’s circumstances can change in a heartbeat. It can be a daily worry whether you will be able to pay off your debt. This angst can come after savings have been depleted and there is the fear of losing your home. You may dread answering the phone, fearing the people on the other end are creditors or collection agencies.

There are indicators of financial stress which suggest you may want to think about filing for bankruptcy.

An early and basic sign of financial stress is that you are missing payments. This can indicate that your debt has become excessive. This is of particular concern if you can’t meet major obligations such as mortgage or auto loan payments. Credit card bills are another test, particularly if you can’t even pay the minimum monthly payments. Making any of these payments late worsens your financial situation by the associated late fees and interest charges that are incurred.

Another sign of significant financial woes is if your vehicle is threatened with repossession.

You may want to look into filing for bankruptcy if the IRS is threatening to seize your assets such as bank accounts or wages.

Another red flag involves receiving threatening letters or demanding phone calls from debt collectors. These notifications usually occur when your debts are 30 to 90 days late.

If you are facing foreclosure on your home your financial challenges are significant. A chapter 13 bankruptcy can give you up to five years to make current delinquent payments and to restructure other debts.

There are many ways to deal with financial challenges. Bankruptcy is the right tool for some people and their circumstances but not for others. Contact Shoffner & Associates to determine what course of action is best for you.

Please leave us a 5 Star Review on Google

Starting a NEW business or know someone that could use our help? Call your friendly neighborhood attorney today.

Freya Allen Shoffner, Esq.
Shoffner & Associates
Counselors to Small Business and Families.

Give Freya a call at (617) 369-0111 TEXT US (413) 207-6219 or email

Let us know your thoughts or suggestions in the comments please.